Massification of higher education and labour market: The case of Taiwan

Abstract

The issue of whether or how higher education can contribute to the labour market or employment has been an enduring topic. The most frequently raised argument by international organizations or governments is associated with the accumulation of human capital. Several quantitative studies even indicate positive social and private returns to higher education on the basis of international research. This association between higher education and wage/income has substantially inspired the widening access to university education in many countries. Taiwan, as a massified higher education system, has achieved a high level of economic growth and productivity. However, this success is accompanied by personal extra study cost, competitive employment opportunity and declining income level. Thus, this chapter provides possible explanations about why and how this negative correlation is formed and what the implications of this dynamic relationship are to the government and individuals.